Key Takeaways
- Tesla will face a potential 30-day suspension of each of its licenses to sell and manufacture cars in California following a court ruling.
- Administrative law judges ruled that the company is misleading the customers with its “Autopilot” and “Full Self-Driving” claims.
- After reviewing the court ruling, the California DMV gave Tesla 60 days to comply with the ruling.
- Tesla hit an all-time closing high of $489.88 following Elon Musk’s tweet confirming the testing of driverless vehicles in Texas.
Tesla will face a potential 30-day suspension of each of its licenses to sell and manufacture cars in California following a court ruling. The administrative law judge ruled that the company’s marketing claims of “Autopilot” and “Full Self-Driving” are misleading and deceptive.
“A reasonable consumer likely would believe that a vehicle with Full Self-Driving Capability can travel safely without a human driver’s constant, undivided attention,” the judge stated in the proposed order. The judge further noted that this belief is wrong both technologically and legally.
California Department of Motor Vehicles (DMV) Director Steve Gordon later announced in a press briefing that after reviewing the administrative law judge’s (ALJ) ruling, the motor department has decided to reduce the penalties by imposing a permanent stay of the suspension of Tesla’s manufacturer’s license and giving Tesla 60 days to take action regarding its use of the term “autopilot.” If the leading automaker fails to comply with the order within 60 days, the company will face a 30-day suspension in California. The ALJ’s ruling was announced on November 20, 2025, and DMV has the authority to review the decision.
In fact, DMV filed a formal accusation against Tesla back in 2023. According to the DMV, Tesla advertised its advanced driver assistance system (ADAS) using terms such as “Autopilot” and “Full Self-Driving Capability,” and described the product using phrases such as “The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat”. But, even now, Tesla’s vehicles with ADAS features lack full self-driving capabilities. Following the accusation, the company started using “Full Self-Driving (Supervised)” instead of “Full Self-Driving Capability”. Despite the legal backlash, Tesla’s (TSLA) stock soared on Tuesday, December 16, to hit a new all-time high.
Tesla Stock Surges to Record High as the Company Tests Driverless Taxi
Elon Musk-led automaker hit an all-time closing high of $489.88 on Tuesday. With a record closing, Tesla became the 7th largest company in terms of market cap. The company staged a strong rally following Elon Musk’s tweet confirming the testing of driverless vehicles in Austin, Texas, without any occupants. “Testing is underway with no occupants in the car,” he wrote on X.
During the pre-market session, Tesla’s share rose by 0.17% reaching 490.74 at press time. Investors continue to flock into the auto major despite the court ruling. Meanwhile, Elon Musk’s net worth is nearing 1 trillion amid the surge in Tesla’s stock price and SpaceX’s valuation.
